Correlation Between PTT Global and BW LPG
Can any of the company-specific risk be diversified away by investing in both PTT Global and BW LPG at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PTT Global and BW LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and BW LPG Limited, you can compare the effects of market volatilities on PTT Global and BW LPG and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PTT Global with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and BW LPG.
Diversification Opportunities for PTT Global and BW LPG
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and BW9 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited and PTT Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PTT Global Chemical are associated (or correlated) with BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of PTT Global i.e., PTT Global and BW LPG go up and down completely randomly.
Pair Corralation between PTT Global and BW LPG
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 0.87 times more return on investment than BW LPG. However, PTT Global Chemical is 1.15 times less risky than BW LPG. It trades about 0.11 of its potential returns per unit of risk. BW LPG Limited is currently generating about -0.08 per unit of risk. If you would invest 62.00 in PTT Global Chemical on September 14, 2024 and sell it today you would earn a total of 3.00 from holding PTT Global Chemical or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. BW LPG Limited
Performance |
| Timeline |
| PTT Global Chemical |
| BW LPG Limited |
PTT Global and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and BW LPG
The main advantage of trading using opposite PTT Global and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, BW LPG can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BW LPG will offset losses from the drop in BW LPG's long position.| PTT Global vs. Cleanaway Waste Management | PTT Global vs. Sims Metal Management | PTT Global vs. Jupiter Fund Management | PTT Global vs. T MOBILE US |
| BW LPG vs. X FAB Silicon Foundries | BW LPG vs. DALATA HOTEL | BW LPG vs. Xenia Hotels Resorts | BW LPG vs. PTT Global Chemical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |